Need to Payoff the Credit Card

POSTED BY praveen p ON August 19, 2013 9:15 am COMMENTS (2)

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Hi sir I have a small doubt, there is a credit card on my name which was taken without my knowledge by one of my cousin who used to work with Barclays Credit Card Company at that time& he was also a freelancer for some other banks. So at that time (2008) I signed  few personal loan forms with him & which I took it for my personal purpose, but I was not aware that I also signed a form which was for Barclays Credit card and which was used by my cousin. All this matter came to lime light recently only when I re applied for credit card & home loan, both got rejected because of poor credit score (573), we had a big fight in our family, finally he agreed to return the actual amount of the credit card which was Rs.23000 at that time, but now in my cibil report it showing as Rs.44000 amount due. Now it’s my headache to clear my cibil report, so I’m ready to pay remaining amount due from my pocket. Now the problem is that Barclays CC company got shut down. When I google it I came to know that they have sold all the accounts to a 3rd party collections & the name of the company is PHOENIX ARC (which belongs to kotek Mahindra bank). Now in my cibil report 1st PAGE showing as-

MEMBERN NAME- PHOENIX ARC, DATE OPENED- 22-01-2008, CREDIT LIMIT-Rs,23,000, CURRENT BALANCE- Rs,44,604, AMOUNT OVER DUE- Rs,44,604. STATUS- NO SUIT FILED ACCOUNT PURCHASED.

ON 2ND PAGE MEMBERN NAME- BARCLAYS BANK, DATE OPENED- 22-01-2008, CREDIT LIMIT-Rs,23,000,CURRENT BALANCE- Rs,0, AMOUNT OVER DUE- Rs,0. STATUS- WRITTEN OFF & ACCOUNT SOLD. BUT Both the account numbers are different.

Are they different accounts or both are one account, bit confused about it. now when I am ready to pay off the balance, what precautions I need to take before making the payment and what documents should I ask them in written that there is no due with them. I also came to know that if there is written off or suit filed I won’t be eligible to get a loan, is that true? If it’s true then what letter should I ask them to keep my cibil report clean & what letter should i ask them to remove that word written off or suit filed. if both the account’s (Barclays and PHOENIX ARC) are one account, what should i ask them to make the account zero amount due & remove the word witten off & suit filed.  Please help me because recently one person approached me that he would clear the cibil report & also help me in settling the credit card amount for lesser amount, for which he also took Rs,5,000 as advance to pay the lawyer fee. It seems i’m getting cheated in every step. Kindly please help no one there to guide me. 

2 replies on this article “Need to Payoff the Credit Card”

  1. BanyanFA says:

    Praveen
    This is really unforunate for you.
    Based upon my knowledge, that if the account has been sold off from Barc to Phoenix, it will show as 0 in Barc’s records. You would need to contact Phoenix recovery department and confirm :
    1. You want to settle the account and if they have a settlement figure
    2. They could reduce the outstandings as they are getting some recovery of a bad debt
    3. Confirm that you want your CIBIL report to be cleared. I would not be surprised if that would work. Once a default, remains a default. However, the default history remains for 7 years. Also, once you settle, it should be marked as ‘Waived off’ and not ‘Written-Off’

    You could also put a claim that it was a fraud against your name as some one has fraudulently got the account opened without your notice. They would refute saying that they have sent out periodic statement to communicate the credit dues. Unless you can prove that it was not sent out or the address was incorrect, this would be difficult one to argue.

    Try to get a credit card and make regular payments. This will build up your credit history once again. I must admit that there is no quick wins here and the lawyer who is trying to get that sorted for you is either cheating you or is having some contacts to wipe the data for you. I can not comment on this part.

    Regards
    Banyan Financial Advisors

    1. praveen p says:

      Hi sir,
      thank you so much for your valuable suggestion, sir the only reason behind rush is that i want to pay off this amount due as soon as possible,so that i can improve my CIBIL Score. i really don’t know how much time will it take for my CIBIL Score look better,but i’m thinking may be within a year. don’t have much knowledge that’s why going with tough time.
      sir,one more question say suppose if i contact the Phoenix ARC (recovery team), & suppose if they say both BARCLAY’S C.CARD & PHOENIX ARC are one account, how should i approach them i means to say, in the beginning itself should i inform them that i am ready to pay off the entire balance or should i ask for settlement on the account. suppose if i go with the settlement, will i be eligible to get future loans?????
      Suppose i go with full payment, apart from NO DUE CERTIFICATE, what else should i ask them in written to make my Cibil record clean & clear. and or should i ask them i need one more NO DUE CERTIFICATE on BARCLAYS LETTER HEAD.
      please help me sir.

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